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Energy bills ‘to fall this summer’ but you could still save money now
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ENERGY bills are predicted to fall by more than expected this summer in a welcome boost for households.
Analysts at Cornwall Insights said the cost of energy bills will fall to £1,683 from July, representing a drop of almost 9% on April’s £1,849 cap.
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If accurate it would shave £166 off the average customers bill and would be £29 cheaper than what experts previously forecast.
Back in March, Cornwall Insight predicted the yearly cost of running your gas and electricity would fall to £1,732 this July, marking a 7% on April's price cap.
Looking ahead, the experts are also currently predicting a "very slight fall" in the price cap in October, with the cap falling again in January 2026.
Energy always tend to fall over the summer, as the demand falls.
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The news comes amid a uncertain period for the UK market.
Above average temperatures has reduced demand for oil and eased pressure on prices.
But experts said that Donald's Trump tariff war and wider uncertainty across the globe could push prices back up.
It is important to remember the figures released by Cornwall today are just a prediction.
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The next price cap for July 1 until September 30 will be announced by Ofgem in May.
Dr Craig Lowrey , principal consultant at Cornwall Insight: "While a fall in bills will always be welcomed by households, we mustn’t get ahead of ourselves.
Watch how clever contraption helps cut my energy bills by £130 a year
“There is unfortunately no guarantee that any fall in prices will be sustained, and there is always the risk of the market rebounding."
He added: "We have all seen markets go up as fast as they go down, and the very fact the market dropped so quickly shows how vulnerable it to geopolitical and market shifts."
Experts added: "While falling prices may appear to be good news, they are also a sign of how volatile the market remains.
"There are many moving parts, and with the July cap still a month away from being finalised, it is too early to say whether these reductions will hold."
HOUSEHOLD BILLS RISING
Earlier this month, the average energy bill rose by £111 a year as part of April's price cap.
This came on top of hikes to council tax, water, broadband and stamp duty, adding extra costs to households bills.
SHOULD YOU FIX NOW?
By James Flanders, Chief Consumer Reporter:
Predictions suggest that energy bills are finally on the decline, with a potential 9% drop expected from July.
That said, the energy market often feels like a rollercoaster – one moment it's up, the next it's down.
Current forecasts could easily change, influenced by ongoing geopolitical tensions, the war in Ukraine, and broader economic uncertainties.
In light of this unpredictability, a fixed tariff might be a wise choice for households keen to manage their budgets.
Opting for a fixed energy deal can provide price certainty and safeguard against potential future price hikes if things were to go south.
Millions of households can already begin saving on their energy bills by switching to one of the leading fixed tariffs, many of which currently offer lower rates than the standard variable tariff.
For example, Outfox the Market's Fix'd Duel Apr25 12M v2.0 tariff costs a typical household £1,549 per year – £300 less than Ofgem's current April price cap.
Even with the anticipated drop in the price cap this July, it would still be £183 cheaper, according to the latest forecasts.
Choosing a fixed tariff offers stability and protects against market volatility.
However, it's important to weigh this decision carefully.
Keep in mind that exit fees may apply if you switch before the contract ends.
Plus, you could miss out on potential savings if the price cap drops significantly in the future.
To find the best fixed energy deals, start by visiting price comparison websites, which aggregate various offers from different energy suppliers
The latest rise was because of an increase in gas prices across Europe, caused by a slump in the amount of gas that is held in storage across the continent.
Despite the rise, average bills remain considerably lower than during the peak of the energy crisis, which was fuelled by Russia's invasion of Ukraine in February 2022.
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The war caused a spike in an already turbulent wholesale energy market, driving up costs for suppliers and customers.
Before the energy price shock, a standard annual bill was £1,084.
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